MARKET OVERVIEW - Iron Ore in Dalian Reaches Two-Month High Amid China's Promises of Stimulus

Forex - Iron ore futures prices in Dalian have risen to their highest level in two months following Beijing's decision to loosen its monetary policy stance for the first time in over a decade, increasing expectations for further stimulus to boost economic growth from the largest consumer. The January iron ore contract on the Dalian Commodity Exchange (DCE) traded at 824.0 yuan/ton ($113.69) at 05:55 GMT, up 2.74%, marking the strongest level since October 8. The benchmark January iron ore on the Singapore Exchange rose 1.05% to $106.4/ton. A statement from the Politburo yesterday indicated that China will adopt a "moderately loose" monetary policy next year, marking its first easing since the end of 2010. Analysts noted that the authorities' commitment to "effectively prevent and mitigate risks in key sectors to ensure that systematic risks do not escalate" is seen as a sign that further steps will be taken to stabilize the real estate market. In DCE, coking coal and coke prices increased by 3.04% and 4.52%, respectively. Steel indicators on the Shanghai Futures Exchange rose as well, with rebar up 3.1%, hot-rolled coil up 2.53%, wire rod up 2.23%, and stainless steel up 0.7%.